Increased net interest margin was achieved owing to a better distribution of loans and financing as well as interest expense that grew slower than interest income.

Bank BTN interest expense grew 9.21 percent year-on-year as of September 2017, lower than the increase in interest income at 12.59 percent year on year.

Maryono said that loans and financing of Bank BTN also increase by 19.95 percent year-on-year, boosted by the growth of loan distribution for the housing sector at 19.32 percent and non-housing at 26.44 percent.

“Within five years, from December 2012 to 2016, loan growth increased at an average rate of 19.22 percent,” he said.

Financing loan growth also helped increase the company’s total assets. In the third quarter, Bank BTN assets rose by 17.56 percent year-on-year from Rp197.29 trillion to Rp231.93 trillion.

The growth is supported by a lower ratio of non-performing loan to total gross loans of Bank BTN from 3.6 percent in 2016 to 3.07 percent this year. Net NPL ratio of the bank stood at 2.06 percent or dropped 0.34 percent compared to last year.

Comments

Disclaimer: The views expressed in the comments sections are personal responses that do not represent the editorial policy of tempo.co. Our editorial staff reserves the right to moderate or take down comments that contain harassment, intimidation and discrimination against ethnicity, religion, race, and inter-group relations.